State Economies Contribution to Nationwide GDP Growth

Real gross domestic product (GDP) increased in 48 states and the District of Columbia in the second quarter of 2017, according to the U.S. Bureau of Economic Analysis. The majority of the states, 44, and the District of Columbia posted an acceleration in its annualized rate from the first quarter of 2017 to the second quarter of 2017 while only six states recorded a slowdown in the growth from the previous quarter. As a result, nationwide growth in real GDP recorded a 3.1% increase in the second quarter, accelerating from its 1.2% rate in the first quarter of 2017.

Across all the states and the District of Columbia, real GDP growth in the second quarter of 2017, ranged from an increase of 8.3 percent in North Dakota to a decline of 0.7 percent in Iowa.  The top 10 states recording the highest rates if growth are shown in the chart below.

The construction sector component of the GDP measures the amount of spending towards new construction. It includes residential and non-residential construction in the private sector, and state and federal at the public level. The construction sector spending levels declined by 0.6% from the first quarter of 2017 to the second quarter of 2017. However, compared to a year ago, the sector is up by 0.6%.

Out of the 50 states and the District of Columbia, only 27 states recorded data in the construction sector. Across these 27 states, six states had an increase in the construction sector while two states saw no change. However, 19 states saw a decline in this sector between the first and the second quarter of 2017.

Compared to the second quarter of 2016, 11 states posted an increase in the construction sector in the second quarter of 2017 while 16 states posted a decline. The average growth across the 11 states were 4.0% while the average decline in the 16 states was 3.7%

The real estate and rental and leasing sector includes renting, leasing, or otherwise allowing the use of tangible or intangible assets (except copyrighted works), and providing related services. The real estate and rental and leasing sector increased by 0.6% from the first quarter of 2017 to the second quarter of 2017 and compared to a year ago, the sector is up by 1.8%.

Twenty-seven states recorded data in the real estate and rental and leasing sector. Out of these 27 states, 22 states had an increase in the real estate and rental and leasing sector while five states saw a decline in this sector between the first and the second quarter of 2017.

Compared to the second quarter of 2016, 20 states posted an increase in this sector in the second quarter of 2017 while seven states posted a decline.

These tables provide information about the economy for each individual state.



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